Data communication systems typically utilize modems when data terminals communicate. With the advance of office automation equipment has come local area networks (LANs) having a plurality of data terminals which are capable of communicating with each other. Instead of using multiple modems, others have multiplexed several data terminals with a single modem by using a statistical multiplexer. Such statistical multiplexers typically couple a plurality of data terminals at 9600 baud per second via multiple input terminals and couple the data to a single output terminal where the data is outputted at 9600 baud per second. A statistical multiplexer functions by constantly scanning all input terminals. When data is identified at any of the input terminals, the data is stored and sequentially outputted at 9600 baud per second with some type of identifier to identify the origin terminal. At a receive terminal, a statistical demultiplexer is required to identify the origin of the data and to properly route the received data. One of several problems associated with statistical modems is the fact that each data terminal is frequency limited. In other words, each data terminal cannot provide continuous data to the modem at 9600 baud without the modem losing a portion of the data. Because statistical multiplexers rely upon statistical properties of data from a data source, usually data is not lost since large blocks of data can be stored if sufficient memory storage exists. However, each channel of data is frequency limited by the data rate of other data channels.